Is there a limit to how low cable can go? Fear is driving the dollar higher, as the GBP/USD has touched a four-week low and is on track to do so for a third day in a row. The trend may come to an end— or at the very least, experience a reversal. Sterling will also be subject to a rate determination.
On Thursday, the Bank of England is expected to keep its policies unaltered, but some members may vote to stop the bond-buying program and perhaps consider rate hikes. Last week, headline inflation surpassed the Bank of England's 1-3 percent objective. The pound should rise as a result of this.